|
 This article will give you an insight into the truth of MLM and the unknown secrets of Network Marketing & Multi Level Marketing(MLM) and will explain why the general MLM model cannot be sustained!
Did you know that 96% of network or multi level marketers are not earning a decent monthly income & 98% of companies offering business opportunities fold up within 2 years?
Do not get me wrong, but this does not mean that there isn't any money in network marketing -- there is, a LOT OF IT! That is the reason why it is so popular. Network marketing is just about the only business that ANYONE, irregardless of gender, education, background, race, age, religion can start off their own business! But to get LOTS of money and to succeed in Network or Multi Level Marketing , you must follow proven business building techniques. To do that we need to understand Why Network or Multi Level Marketers' failure rate is as high as 96% and the reasons why people quit?
GROWTH BY GEOMETRIC PROGRESSION IN NETWORK MARKETING OR MLM
One of the most exciting aspects of network marketing is how you can potentially gain a large network from sponsoring a few people (Distributors) personally, with them in turn doing the same thing, with the pattern repeating. ie. If you sponsored just 2 Distributors, and they each sponsored just 2, who each sponsored just 2, etc., then this is what it would look like:
2 X 2 = 4 X 2 = 8 X 2 = 16 X 2 = 32 X 2 = 64 X 2= 128 X 2 = 256 X 2 = 512 X 2 = 1024
1024 X 2 = 2048 X 2 = 4096
If it took 30 days for this pattern to duplicate (each Distributor sponsoring 2 others in their first 30 days), then you will have gained a huge membership network with over 8,000 Distributors in just one year. It is this potential of geometric growth that gets people excited about Network Marketing. Just think, if you were making $2.00 per Distributor, then in one year you would be making $16,000 per month! Sounds great, doesn't it ? It also sounds too good to be true. The problem is............
It is too good to be true!
THE MLM (MULTI LEVEL MARKETING) TRUTH
 In the past 20 years, more people have become millionaires using Network Marketing or Multi Level Marketing (MLM) than from any other occupation or profession. Despite the success stories, Network Marketing or MLM has had more than its fair share of problems and failures. With the explosion of internet based opportunities, many so called MLM opportunities are really cleverly disguised, illegal pyramid schemes that are here today and gone tomorrow.
Many people who have tried their luck with legitimate MLM programs and have lost money or failed to make enough money to make it worth their while to continue their efforts. Here are the facts that so many Network and Multi Level Marketers (MLMers) or promoters fail to acknowledge or tell you:
Typically, 60% to 80% of the people who join network marketing or mlm, sponsor less than 2 members each, in their first 30 days. Therefore, the "each person sponsoring 2" geometric progression shown above, never really occurs in this manner.
The other factor that is not considered in the Geometric Progression scenario above, is that most of the people that join QUIT and the majority of them do so within a few months after joining. Consequently, annual drop out rates can be as high as 80%. According to the book, "Promises to Keep", about 50% of the distributors of the biggest MLM company in the world, drop out each year.
WHY NETWORK & MULTI LEVEL MARKETERS' FAILURE RATE IS AS HIGH AS 96% AND WHY DO PEOPLE QUIT? |
